Faster Turnaround at the Back End.
The good news is that once a facility has been constructed the timeline to obtain a license should be shortened considerably. Given that Health Canada will no longer be deploying resources to review paper-based applications of facilities that have not been built, more resources can be spent processing applications where construction has been completed.
Questions About Security Clearance Times.
Now that security clearances will not be processed until after a facility is built, how long it takes to process those clearances becomes an even more important question, especially given that applicants will now be sitting on fully built out facilities and burning cash while they wait for those security clearances to be processed.
Any Significant Changes to Financing?
Many think that this change may make it harder to raise capital and put a squeeze on smaller applicants. I am not so sure that is the case. Raising capital for cultivation (and perhaps processing) facilities is not an easy endeavour at the moment. Many investors feel that the market is, or will shortly become, saturated and are looking to deploy their money elsewhere. Long gone are the days where bags of cash are thrown at every “late stage applicant”. Securing capital requires a solid team and compelling business plan, two things that ought to be put in place well before a facility is actually constructed.
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